August 2, 2019 | 12:02 am
PXP Energy
Corp. posted a P7.6-million consolidated net loss attributable to equity
holders of the parent firm during the first six months of 2019, trimming the
P20.1-million losses posted in the same period last year.
Reported consolidated
net loss was also cut to P17.9 million from P32.8 million “due to reduction in
oil production costs, lower depletion rate, and higher other income (charges),
partially offset by lower petroleum revenues,” it told the stock exchange.
PXP Energy, an upstream
oil and gas company, has yet to disclose its financial figures specific to the
second quarter.
During the first half,
its consolidated petroleum revenues fell by 22.9% to P51.4 million from P66.7
million a year ago “resulting from a 13.6% drop in crude oil price in Service
Contract (SC) 14C-1 Galoc, and the plug and abandonment (P&A) of SC 14A
Nido and SC 14B Matinloc production wells.”
The company directly
and indirectly owns oil and gas exploration and production assets in the
Philippines, and indirectly owns an exploration asset in offshore Peru.
PXP Energy cut its cost
and expenses by 22% to P86.2 million brought about by lower depletion cost in
SC 14C-1 Galoc and the cessation of operational costs in SC 14A Nido and SC 14B
Matinloc.
“Group general and
administrative expenses higher due to depreciation charges from Right-to-Use
asset,” PXP Energy said.
Among the highlights of
the reporting period is the payment on Feb. 11 by Philex Mining Corp. of an
additional P1.386 billion in connection with PXP Energy’s announcement in Oct.
26, 2018 of the signing and execution of a definitive subscription agreement.
The mining company
subscribed to 260,000,000 common shares at P11.85 per share for P3.081 billion.
With the payment, Philex Mining’s total paid subscription increased from
P770.25 million to P2.156 billion, representing 70% of its total subscription
in PXP Energy.
PXP Energy also said on
Thursday that through Forum Energy Ltd., a 78.98% owned subsidiary, it would
take guidance from the Philippine government on any future activity in SC 72
and SC 75.
The company said it was
“mindful that the Malampaya gas resource, which supplies about 40% of Luzon’s
power requirements, could be exhausted within the next decade.”
“In that light,
resumption of exploration in SC 72 is of national interest…. [PXP Energy]
therefore, remains hopeful that the force majeure imposed on SC 72 and SC 75
will be lifted by the Department of Energy soon for [it] to be able to resume
exploration works in these SCs (service contracts),” it said.
On March 2, 2015, the
Energy department placed SC 72 under force majeure because the contract area
falls within the seas that was the subject of the arbitration process at that
time.
Earlier this week, PXP
Energy Chairman Manuel V. Pangilinan said he had not heard any advice from the
government on the lifting of the moratorium.
“No words from the
government. No words from CNOOC,” he said, referring to China National Offshore
Oil Corp., the Chinese state firm with which PXP Energy had initial talks with
for a joint exploration.
On Thursday, PXP Energy
shares traded higher by 3.35% to close at P10.48 each. — Victor V. Saulon
No comments:
Post a Comment